Global Digital Tax Reforms: Highlighting potential impacts for mining countries

Since 2018, the Organisation for Economic Co-operation and Development (OECD) has led a global initiative to address the tax challenges arising from a digitalized economy. The primary objective of this initiative, under the responsibility of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, is to ensure that digitalized companies carrying out business in places where they do not have a physical presence pay tax in these jurisdictions. However, the proposals are, in fact, much broader, with potential implications for mining. Resource-rich countries need to ensure that the reforms do not undermine their right to collect revenues from the mining sector.